The evolution and continued growth of delivery apps has changed the way we operate on a daily basis, from how we shop to how we order our dinner.
Thanks to the rise of DoorDash (DASH) – Get the Class A report from DoorDash Inc. and Uber Eats (UBER) – Get the report from Uber Technologies Inc.we grew up expecting to be able to eat any food we want in an hour without having to move a muscle, something that would amaze us (and did) not so long ago.
Then the covid pandemic caused people to rely heavily on these services, further entrenching the habit in our collective consciousness.
But of course, all businesses must evolve once amazing service becomes the status quo. Target (TGT) – Get the target company report did this by adding returns and Starbucks (SBUX) – Get the Starbucks Corporation report beverage delivery to its Drive-Up service, which makes the experience even better for the customer and encourages greater brand loyalty.
DoorDash and Uber saw sales decline as the world slowly eased past pandemic restrictions, ready to brave restaurants and retail stores again. To cope, the two had to think of ways to make their services more appealing.
And now it looks like DoorDash has thought about it.
What is the new feature of DoorDash?
In March 2022, DoorDash announced that it would be testing a new feature called Package Returns.
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To use it, DoorDash users can request a package return in the app and have a dasher pick up the package and take it to USPS, UPS (UPS) – Get the United Parcel Service Inc. report.or Fedex (FEDEX) for you.
There are some limitations to the service: your item must weigh less than 30 pounds, already have a shipping label attached, and must not have a value over $100.
The cost of the service has yet to be confirmed, but it’s free for DashPass members for a limited time, according to an in-app announcement.
DoorDash declined to confirm which cities are involved in the test, although reports of it being available in Atlanta began surfacing on Twitter.
Uber has explored working with packages in the past. It announced its own bundle service in 2020 called Uber Connect. But rather than returning the ferry for you, his service picks up packages or food and brings them to another address in the same city.
He also tried a package delivery service in Manhattan in 2015charging $4 for each pickup.
Will this move boost DoorDash’s business?
While it’s likely that people will use the service, all three major delivery services offer some form of parcel pickup. UPS and FedEx charge for it, but USPS will pick up your package for free.
However, many do not use these services as they may not be aware of them or may not want to fill out a form. DoorDash simplifies the process, making picking up a package as easy as pressing a few buttons in the app.
Despite stronger-than-expected selling on its first-quarter earnings call, DoorDash stock tumbled in May, with analysts predicting potential downgrades on the horizon later this year.